Paul Goodeve: Clarus CEO on the potential to import liquefied natural gas to bolster supplies

Importing liquefied natural gas could potentially require one billion dollars in capital investment. 

Major energy companies Clarus, Contact Energy, Genesis Energy, Meridian Energy, and Mercury have commissioned two studies looking into the option. 

Data out last month shows New Zealand’s domestic gas supply is reducing faster and sooner than previously forecast. 

Clarus chief executive Paul Goodeve says it would be expensive. 

He told Heather du Plessis-Allan that the most important thing is not what it costs, but the value it brings, and last winter we saw the cost of not having a stable fuel supply. 

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Episode Transcript

Speaker 1 (00:00):
So in new reports is that we can import liquefied
natural gas into the country. It is possible, but it
is expensive and we would only use it occasionally. The
report's been commissioned by our four main power companies. Paul
Goodeve is the Claris chief executive, the gas company involved
in with us.

Speaker 2 (00:13):
Now morning, Paul, Lorena, Heather, how are you?

Speaker 1 (00:16):
I'm very well, thank you. So it will cost up
to a billion dollars. This is a pipe dream, then,
isn't it.

Speaker 2 (00:21):
I think that we shouldn't get fixated on the costs.
I think the most important thing about allergy or any
energy form is not what a cost, is the value
that it brings. And what we saw last winter is
the cost of not having a fuel like this. And
that's what we want to think about, is not we
know that we can do it. Now, we've got to

(00:42):
work out whether it's actually worth doing it, and if
the focus needs to be on the value that it brings,
not necessarily the cost.

Speaker 1 (00:48):
Well, well, I mean, I guess that's what I'm getting to, right.
Is it worth doing it if it costs up to
a billion dollars and we only, as you guys say,
use it occasionally.

Speaker 2 (00:57):
I think that that is the next stage of work
that we need to undertake is to ascertain where it
fits in the scheme of music engenergy system. What we
did some work on was both a standard sized imputation terminal,
which like you said, is a very significant capital cost,
but we also looked at a smaller, maybe more New

(01:17):
Zealand appropriate sized project which would be able, which we
be able to do for probably a capital cost of
around two hundred million plus.

Speaker 1 (01:26):
Okay, So which would you go for? Would you go
for the big one that costs a loss but the
gas is cheaper or the small one that costs less
but the gas is twenty five percent more.

Speaker 2 (01:33):
Expensive And that's that is the issue that we need
to work through now, and so that is part of
the reason that we are issuing this report with our partners,
so that we can have a discussion about what the
best best solution for a new.

Speaker 1 (01:46):
Gene you could import al and g Paul, would you.

Speaker 2 (01:50):
I certainly think it's part of the energy mix that
we need to fuel our economy going forward. So we
are we are advocates of having a range of fuel
twenties zone the energy system, and I think Gullanty is
part of that next all.

Speaker 1 (02:05):
Right, Thanks Paul Paul good Eve, Clari's chief executive.

Speaker 2 (02:08):
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